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Introduction

The construction and real estate sectors in the Nordic region, while crucial to the economy and employment, significantly contribute to environmental issues, accounting for 39% of regional energy-related CO2 emissions with additional environmental impacts including resource depletion, pollution, and biodiversity loss.
Addressing the challenges connected to the modern construction industry is a question that takes more than a dialogue between the authorities and the industry. It is a societal activity of great importance impacting the whole of society. Hence, it is needed to say, that if we want to change something and form a path for the construction industry to become more sustainable, including a significant reduction of the negative impact of construction and a promotion and development of a practice that respects planetary boundaries and contribute positively to a better tomorrow,  then we need to do something different.
Although there has been a growing focus and ambition in these areas—evidenced by initiatives such as the New European Bauhaus, the recent passing of the EU Nature Restoration Law, the establishment of environmental councils and committees, and the integration of sustainable development goals—economic considerations often overshadow these concerns. In some cases, the drive for GDP growth and specific industry interests has led to a disproportionate emphasis on short-term gains, at the expense of long-term sustainability.
Like in many countries, the construction sector in the Nordics is cyclical and sensitive to economic fluctuations. It typically expands during periods of economic growth and contracts during downturns. However, public infrastructure investments often help stabilize the sector during economic slowdowns.
Beginning around 2010 the Nordic countries have been collaborating to reduce the climate and environmental impact of construction with the aim of making the region the most sustainable in the world.
This report presents the work of a specific project named SUSTAINORDIC, that is amongst the latest developments in the common Nordic cooperation in this regard. SUSTAINORDIC is based on a thinking that the transformation towards carbon neutrality of the construction sector requires a full systems transformation. This involves a fundamental and integrated transformation of structures, processes, and practices to create a more environmentally, socially, and economically viable built environment. 
As part of designing for implementation of the Nordic Vision 2030 all these components and the interdependencies between them must be considered and reflected in holistic policies, regulation and frameworks that reflect real life experience from the users and form a new path for place-based sustainable development  and clear the path towards long-term positive impacts on both human well-being and the health of the biosphere.
This report contains a set of recommendations to the shaping of the coming 5 years of the Nordic Vision 2030 in support of the commitment stated in the Nordic commitment to low carbon construction and circular principles in the construction sector to continue Nordic collaboration on lowering the climate- and biodiversity impact and GHG emissions from buildings, waste, construction sites, building materials, the existing building stock and construction processes.
The content of this report is based on input from Nordic urban planners, policy makers, architects, engineers, developers, building owners, grassroot movements and activists collected through 28 panel debates and events, 24 interviews, 4 roundtable conversations as well as numerous conversations with experts and thought leaders connected to the SUSTAINORDIC project. A list of all the involved direct and indirect contributors can be found at the end of this report.
The results of this report are a product of a dialogue over the last three years with a plethora of experts and practitioners in and around the construction sector in the Nordic countries. The dialogue has been hosted and facilitated at several events in all the Nordic countries, at formal meetings, at the Nordic democracy festivals, at the UIA World Congress of Archite­cture, At The Arctic Circle Assembly, in digital events and roundtable discussions, through interviews, at the New European Bauhaus festival, COP26 in Glasgow, COP27 in Sharm-El-Sheik and COP28 in Dubai.
See full list of events produced by SUSATINORDIC here: Events — SUSTAINORDIC
The content of this report is based on input from Nordic urban planners, policy makers, architects, engineers, developers, building owners, grassroot movements and activists collected through 28 panel debates and events, 24 interviews, 4 roundtable conversations as well as numerous conversations with experts and thought leaders. One of these events was the session titled "Collaborate for a Regenerative Future" at the World Congress of Architecture (UIA23) where we invited reflections from among others climate activist, Elise Sydendal, Jan Christian Vestre, Norwegian Minister of Trade and Industry, Lilja Alfreðsdóttir, Icelandic Minister of Culture and Business Affairs, and Karin Svanborg-Sjövall, Deputy Minister to the Swedish Minister for Culture, discussing the role of architecture and politics in driving sustainable transformation.
As part of structuring the work, a Transformation Panel was established consisting of change agents of different kinds and perspectives, that has had a proactive role throughout the work and has contributed to facilitate and catalyse the ambitions of the project. The members of the Transformation Panel have met on different occasions and contributed significantly to the development of the thinking and finally the recommendations of the report.
 The Transformation Panel consisted of:
  • Anna Denell, Hållbarhetschef, Vasakronan, Sweden
  • Susanne Rudenstam, Kanslichef, Sveriges Träbyggnadskansli, Sweden
  • Mark Hughes, Aalto University, Finland 
  • Pasi Aalto, Professor, Norwegian University of Science and Technology; Norway
  • Hulda Hallgrimsdottir, Project Manager, Climate, City of Reykjavik, Iceland
  • Bjarke Fjeldsted, Chief Product Officer, Molio, Denmark
  • Benedicte Wildhagen, Chief Adviser Public Systems & Service Innovation, DOGA, Norway

The content of this publication has been developed over nearly three years in a constantly evolving landscape of debate and knowledge. As such, this publication provides a snapshot of the current state of understanding and can offer guidance on potential directions for future development.
In the Nordic countries, the construction sector accounts for an average of 6.3% of total economic activity, while real estate activities contribute around 9.3%. Together, these sectors play a significant role in the region's economy. 
Employment connected to the sector typically represents about 6-10% of total employment, providing jobs across various skill levels, from manual labour to engineering and project management. The housing market is a major driver within the construction sector, with rising demand for residential properties fuelled by changing demographics and urbanization. This demand not only sustains construction activities but also impacts related industries such as real estate, finance, and retail. 
While the construction sector contributes to employment and GDP, it also has a substantial environmental footprint. The sector has been estimated to be responsible for about 39% of the world’s energy-related CO2 emissions,
J. H. Andersen, N. L. Rasmussen, and M. W. Ryberg, ‘Comparative life cycle assessment of cross laminated timber building and concrete building with special focus on bio-based carbon,’ Energy Build., vol. 254, p. 111604, Jan. 2022, doi: 10.1016/j.enbuild.2021.111604
with additional environmental impacts including resource depletion, pollution, and biodiversity loss. Specifically, the embodied carbon from building materials contributes to approximately 10-20% of the EU’s building-related carbon dioxide emissions.
In our meeting with these stakeholders, it has been evident that the challenges at the intersection of construction and climate issues are of such a profound systemic and cultural nature that they cannot be addressed alone through individual, independent efforts nor through legislation and technological solutions.
The entire system within and around the construction sector needs to be turned upside down, encompassing everything from procurement to financing to mental models, all requiring simultaneous transformation.
Therefore, we have also observed a tendency for the discussions around formulating specific recommendations to the Nordic Council of Ministers to elevate to a more existential level. Topics such as ecological economic philosophy, a life-centric worldview, and a redefinition of what we understand as "the good and worthy life" are emerging, shifting from a consumption-based focus to centre around immaterial values in the form of culture and social connectedness.
Given the systemic nature of the needed transformation of the construction sector, the concrete recommendations presented in the following document should not be viewed as standalone solutions. They must constantly be weighed against each other and ultimately calibrated with consideration for planetary boundaries. And as such, they should not be seen as recommendations that can be implemented 1:1. It will take considerations, adjustment to local context, multilevel governance alignment and simply dialogue. What is needed is a systemic political vision and roadmap towards a sustainable construction sector in the Nordics that navigates and combines the recommendations you will find in this document.
Dorte Bo Bojesen, CEO, Form/Design Center and project owner, SUSTAINORDIC
Photo: SUSTAINORDIC
The Director-General of UNESCO Mme Audrey Azuley in dialogue with Dorte Bo Bojesen, director of Form/Design Center in Sweden/project lead for SUSTAINORDIC and Tobias Olsson, VD, Sveriges Arkitekter
The SUSTAINORDIC Transformation Panel visiting the community center, Bygdeboxen in the Norwegian island of Stokkoy.
We can't build our way to Paris. We can't achieve the goals of the Paris Agreement by just building sustainably. That's why we need to do something different. For example, when it comes to office buildings, 50% of commercial buildings are vacant, not only in Norway but throughout the EU, and this was the case even before Corona. There is a vast building stock that we can reuse and revitalize. We must rethink how we utilize the existing building stock instead of building new ones. 
- Harald Vaagaasar Nikolaisen, CEO, Statsbygg, Norway
Foto: Statsbygg/Geir Anders Rybakken Ørslien

Four Overarching Pathways to Change

The first phase of SUSTAINORDIC
Read more about the project SUSTAINORDIC in the section “About Nordic Sustainable Construction and SUSTAINORDIC”.
has focussed on knowledge gathering around the question of what it takes for the construction sector in the Nordics to transform in the direction of operating safely within the planetary boundaries.
The outcomes of this effort can be clustered into four focus areas or levers for change:

The Hierarchy of Material use in Construction

We should intensify the utilization of the existing building stock and design spaces for multifunctional and flexible purposes. Prioritizing energy renovation, renovation, and transformation over new construction is crucial. Introduction of virgin materials should only occur when absolutely necessary, and in such cases, the use of bio-based building materials is recommended for both new construction and renovation to mitigate the negative impact of embedded energy.

Place-based Development and Architecture as a Community Builder

Construction and architecture should be defined by the context in terms of local material and resource availability, cultural, social, and aesthetic context as well as legislative context working actively with architecture as a community shaper and a nudger of sustainable behaviour as a lever for change. This focus area explores a holistic and place-based approach to community building and urban development in the Nordic region to reduce the environmental impact of buildings and infrastructure, promote more sustainable lifestyle choices, build stronger and more resilient communities, and preserve local cultural and aesthetic traditions and values.

The Underrepresented Stakeholders in Construction Policy

There is a significant need to include voices that lack the economic or political leverage required to influence the current construction system. These voices or stakeholders include future generations and the nine planetary boundaries. A fundamentally changed approach to land use including consideration for biodiversity impacts both on- and off site is essential. New leadership structures and decision models are needed to ensure the representation of these stakeholders, who lack a voice in traditional democratic systems and current economic models.

Regulation for Sustainable Construction and Architecture

Governance and regulation have been repeatedly cited as both an obstacle and a powerful lever for change. The aim and need are for legislation and regulation to be directed towards a consistent alignment between the safe operating space within planetary boundaries and our construction practices. This requires holistic legislation of individual legislation pieces with the planetary boundaries as the one overarching principle of priority to shape all aspects of the construction sector.
This report will offer recommendations for each of these four focus areas. It is important to note, however, that all elements are interconnected and therefore, the same recommendations may respond to several focus areas at once.
The hierarchy of material use is firstly to maximize the amount of reused material, next choice is using recycled material and as a last choice, renewable material. Carbon intensive virgin materials should be off the list completely. Of course, there is a step before reusing – that is, not using anything at all – so we consider every design choice very carefully and continually ask if we answer up to an actual need of space and functions before starting to use any material.
- Anna Denell, Chief Sustainability Officer, Vasakronan
Figure 20 -Anna Denell – Photo Gustav Kaiser.JPGPhoto: Gustav Kaiser
Photo: Mikael Olsson
The Uppsala City Theatre was renovated in 2020 by Studio Feuer in a process where emphasis on preserving the integrity of the building's original architecture was central. During the renovation, the goal was to maintain the theater's classic design, while making modern updates that would enhance functionality without compromising its historical value. The project maintained a light touch on the original structure, ensuring that the building's heritage continued to shine through.
Photo: Rasmus Hjortshøj
The transformation of Gjuteriet in Malmö, designed by Kjellander Sjöberg for Varvsstaden, focuses on the intensive re-use of repurposed materials, the project demonstrates how existing buildings can be reimagined based on circular principles. The abandoned old building has been given new life as an innovative and open new meeting place and a new company headquarters for Oatly. Throughout its radical transformation the building still tells the story about the port’s rich maritime heritage. This is achieved through a composition where new and old elements integrate into a whole, while still retaining their distinct and separate layers.